Upcoming Foreclosures

How much will lenders discount (%) the listing price for bank owned properties?

Public Comments

1. Typically, not much. If the lender has been sitting on the REO for awhile, there may be more motivation. But if the lender has lowered the price, looking for offers, do not expect much flexibility on price. I know there are tons of sites that say that lenders are accepting pennies on the dollar or need to "clear the books" are are taking very low offers, but that is not reality in MOST markets.
2. Depends on the lender involved, the pricing structure of the property, and your location. Where I live, I've seen foreclosed properties selling for 10-15% ABOVE the listed price. Do not assume that there is generally a price discount. You should use the services of a qualified buyer representative real estate agent, who can help you figure out what current market value is for a given property. Your offer should be gauged by what you discover doing so.
3. They already priced them to sell, they are priced below FMV. You can expect them to go to about 15% below FMV, which should be 5-10% below their asking.